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Study shows 'surprising' investment habits of North East business owners

A study by chartered accountants Haines Watts has revealed that business owners in the North East are drawing modest salaries and sacrificing their own pensions in favour of investing heavily in their businesses.

Looking at firms which turnover £1m to £50m, the Haines Watts Wealth Survey investigates the earnings, wealth and spending habits of UK business leaders.

19% of North East company owners surveyed do not have a pension fund, with 16% expecting to retire after the age of 75.

Company owners told the firm, which has offices in Newcastle and Darlington, that they are instead putting their wealth back into their business or taking other risks such as investing on a stock exchange.

Donna Bulmer, managing partner at Haines Watts North East, was somewhat surprised at the results.

She explained: “As a business owner, it’s important to consider your business’ future. However our study reveals that owner-managers in the North East are reinvesting in their businesses to the detriment of their own retirement or lifestyle.

“Considering how hard owner-managers work, many with the hope of an early retirement or a luxury lifestyle, the survey results were somewhat surprising.”

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